Federal Opposition Leader
Tony Abbott
in effect has confirmed a Coalition government would privatise national health insurer Medibank Private, in what would be one of the biggest public share offers since the $7 billion sale of Queensland coal haulage operator
QR National
two years ago.

“We committed before the last election to the privatisation of Medibank," Mr Abbott said after a meeting with retirees and mature aged workers in northern Sydney on Tuesday.

“We think that private health insurance is a competitive market. We don’t see any reason in principle why you still need to have a government-owned health insurer."

Mr Abbott would not be drawn on whether the sale of Medibank, which was valued at about $4 billion in 2010, would proceed within the Coalition’s first term in office if it won the election, although shadow treasurer
Joe Hockey
has indicated previously that the float would proceed “at the first responsible opportunity".

The federal government has consistently refused to entertain the possibility of selling the health insurer despite talk about it from Coalition MPs.

The Minister for Finance and Deregulation,
Penny Wong
, reiterated the same sentiment expressed late last year, saying only: “The government does not have any plans to privatise Medibank Private."

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Concerns that the sale of Medibank Private will lead to higher premiums were first aired during a 2006 inquiry into the issue.

At at Senate committee hearing in February, current managing director
George Savvides
pointed to difficulties which arose competing with many other health funds for business as part of the reason they preferred a government rebate that was available to everyone.

“That would make our job a lot easier," he said. “I am running a business that sells health insurance products and I have to compete with 33 other health funds. Affordability, in whatever form it takes, is an important criterion."